This paper deals with immiscible blends of poly(ethylene terephthalate) obtained by melt blending with polycarbonate. A large survey of the current knowledge in the field of these blends is presented. Resolved and unresolved issues concerning the effect of exchange reactions on the miscibility of the components are addressed. The experimental part of the paper focuses on the rheological behavior of PET/PC blends. Blends containing various polymer ratios were obtained by melt blending with and without transesterification catalysts. Oscillatory shear flow in the melt was used to characterize the rheology of the various samples. A plot of the oscillatory data, similar to the Van Gurp Palmen plot, is used to point out the broadening of the co-continuity window when in situ compatibilization takes place.